Talks with US delegation on economic reform and financial sector support: Salehuddin

The government discussed with the US delegation issues of economic reforms, support for the financial sector and ways to recover money sent abroad.

Financial Advisor Dr Salehuddin Ahmed said this while responding to questions from journalists after meeting the US delegation and witnessing the signing of an amendment to the grant agreement, which took place at the State Guest House Padma in Dhaka on Sunday.

The United States Agency for International Development (USAID) will award Bangladesh a grant of $202.25 million for three sectors, namely: good governance, social, humanitarian and economic opportunities, and resilience.

In this regard, the sixth amendment to the “Development Grants Agreement (DOAG)” between Bangladesh and USAID was signed today at State Guest House Padma.

Economic Relations Division (ERD) Additional Secretary AKM Shahabuddin and USAID Mission Director Reed J. Aeschliman signed the amendment on behalf of the Government of Bangladesh and USAID.

The signing ceremony was witnessed by, among others, Dr. Salehuddin Ahmed, visiting Assistant Secretary for International Finance at the U.S. Department of the Treasury Brent Neiman and Assistant Secretary for South and Central Asian Affairs at the U.S. Department of State Donald Lu.

Also present were Secretary of Finance Department Dr Md Khairuzzaman Mozumder and Secretary ERD Shahriar Kader Siddiky.

Dr Salehuddin said today’s discussion with the US delegation mainly focused on discussions with the Department of Treasury and USAID, where priority was given to issues related to financial sector reforms to ensure good governance and provide support in the financial sector.

In addition, there were discussions on export diversification, the use of technical assistance in trade and market exploration. “We need to move forward with a concrete work plan and they (the US) have assured us of their support.”

Referring to the grant agreement amendment, the advisor stated that USAID will provide an additional $202.25 million under the new agreement amendment.

Asked if there was any discussion on the return of money taken abroad, Dr Salehuddin said such a discussion had already taken place but the details would be discussed later.

He added that revenue sector reform and tax reform were also discussed.

Znjali Kaur, deputy assistant administrator for Asia at the United States Agency for International Development (USAID), said that under the new amendment, the caretaker government of Bangladesh will receive about $200 million in support in priority sectors.

“We have consulted, listened and will cooperate with the interim government. We are ready to implement this agreement,” she added.

She said such support would help the government continue its priority work and also ensure the general prosperity of the people of Bangladesh.

Anjali said this means strengthening economic stability, improving healthcare and good governance, and empowering the younger generation.

On September 27, 2021, Bangladesh and USAID signed a new DOAG agreement for 2021-2026.

In implementing DOAG, USAID has committed a total of $954 million. To date, through the 5th Amendment, USAID has committed $425 million to Bangladesh.

The United States of America has been a trusted development partner of Bangladesh since 1972. Under the umbrella agreement titled “Economic Technical and Related Assistance” signed in 1974, the US has contributed over $8 billion till date in various sectors such as democracy and governance; food security; health and education; global climate change.

The United States provides most of its development assistance through USAID, the United States Department of Agriculture (USDA), and some other governmental and nongovernmental organizations.

Source: BSS